Chinese Drywall Class Action Lawsuit Filed in Nevada

Homeowners in Nevada have filed a Chinese drywall class action lawsuit against local builders, saying that defective drywall in their homes have caused a variety of health problems. However, the CPSC has not reported any complaints of problems from the state and several of the defendants named in the lawsuit deny using any of the defective drywall in homes built in Nevada.

The lawsuit was filed last week on behalf of homeowners in two Las Vegas neighborhoods, which could potentially cover between 3,000 and 5,000 homeowners. Companies including US Home Corp., Greystone Nevada LLC, Lennar Nevada, Georgia-Pacific Gypsum LLC and Georgia-Pacific LLC have been named as defendants in the lawsuit that seeks class action status.

Defective Chinese drywall imported into the country between 2004 and 2007 during a domestic shortage has resulted in complaints from hundreds of homeowners throughout the United States, involving claims that the drywall emits sulfuric vapors that cause homes to fill with “rotten egg” smells, corrode wiring and electrical appliances, and has been blamed for a variety of health effects, including respiratory problems.

The U.S. Consumer Products Safety Commission (CPSC) has received complaints from homeowners in 24 states and the District of Columbia. However, as of its last update on the Chinese drywall problem earlier this month, the CPSC has not disclosed any reports of Chinese drywall problems in Nevada.

It has been estimated that as many as 100,000 homes in the United States were constructed with the drywall from China and the CPSC has confirmed that more than 6 million sheets of Chinese drywall were shipped into the country for use during 2006.

According to the Las Vegas Sun, builders in the Las Vegas area doubt that the homes included in the lawsuit were built with Chinese drywall, as the area is a hub of drywall manufacturing.

Lennar has denied any Chinese drywall was used in homes it built in the area, and released letters from suppliers supporting its statements. Lennar has admitted to using Chinese drywall in homes built in Florida, and the company has sued suppliers and foreign manufacturers for selling them the defective material.

Georgia-Pacific officials have also said that their company did not import any Chinese drywall.

A large and growing number of Chinese drywall lawsuits have been filed across the country against home builders, drywall manufacturers and suppliers across the country. Lennar says that it has been named as a defendant in at least 41 state lawsuits in Florida and two federal class action lawsuits, not including the newest filing.

All federal cases filed throughout the country involving issues with Chinese drywall have been consolidated and centralized into an MDL, or Multidistrict Litigation. The cases have been transferred to Judge Fallon for coordinated pretrial litigation and discovery, and Judge Fallon has indicated that he intends to fast track the litigation, with the first Chinese drywall trials potentially beginning within six months.